Colorado 2022 2022 Regular Session

Colorado House Bill HB1412 Introduced / Bill

Filed 04/28/2022

                    Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
 
 
LLS NO. 22-0314.01 Richard Sweetman x4333
HOUSE BILL 22-1412
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING THE CONTINUATION OF TH E DIVISION OF GAMING IN THE101
DEPARTMENT OF REVENUE , AND, IN CONNECTION THEREWITH ,102
IMPLEMENTING THE RECOMMENDAT IONS CONTAINED IN THE103
2021
 SUNSET REPORT BY THE DEPARTMENT OF REGULATORY104
AGENCIES.105
Bill Summary
(Note:  This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Sunset Process - House Business Affairs and Labor
Committee. The bill implements the recommendations of the department
HOUSE SPONSORSHIP
Garnett and Van Winkle, Amabile, Roberts
SENATE SPONSORSHIP
(None), 
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. of regulatory agencies in its sunset review and report on the division of
gaming (division) in the department of revenue. Specifically:
! Sections 1 and 2 of the bill implement a portion of
recommendation 1 of the report by continuing the division
for 11 years, until 2033;
! Sections 1 and 3 implement a portion of recommendation
1 by continuing the regulation of sports betting by the
division for 5 years, until 2027;
! Section 4 implements recommendation 2 by allowing the
Colorado limited gaming control commission to delegate
licensing duties to the division;
! Sections 5 and 6 implement recommendation 3 by
changing the minimum age for a casino employee from 21
years of age to 18 years of age;
! Sections 7 and 8 implement recommendation 4 by
designating the department of revenue's hearings division
to conduct hearings under the "Fantasy Contests Act";
! Section 9 implements recommendation 5 by repealing the
requirement that internationally based internet sports
betting personnel submit to a fingerprint-based criminal
history record check; and
! Sections 10 through 14 implement recommendation 6 by
subjecting payments of sports bet winnings to the
"Gambling Payment Intercept Act".
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(23)(a)(VII); and add (28)(a)(VII) and (34)(a)(II) as follows:3
24-34-104.  General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (23) (a)  The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2022:7
(VII)  The division of gaming created in part 2 of article 30 of title
8
44;9
(28) (a)  The following agencies, functions, or both, are scheduled10
for repeal on September 1, 2027:11
HB22-1412-2- (VII)  THE REGULATION OF SPORTS BETTING BY THE DIVISION OF1
GAMING PURSUANT TO PART 15 OF ARTICLE 30 OF TITLE 44.2
(34) (a)  The following agencies, functions, or both, are scheduled3
for repeal on September 1, 2033:4
(II)  T
HE DIVISION OF GAMING CREATED IN PART 2 OF ARTICLE 305
OF TITLE 44.6
SECTION 2. In Colorado Revised Statutes, amend 44-30-206 as7
follows:8
44-30-206.  Repeal of division - review of functions. Unless
9
continued by the general assembly, This part 2 is repealed, effective10
September 1, 2022, and those powers, duties, and functions of the director11
specified in this part 2 are abolished. The provisions of section 24-34-10412
(2) to (8) concerning a wind-up period, an analysis and evaluation, public13
hearings, and claims by or against an agency apply to the powers, duties,14
and functions of the director of the division SEPTEMBER 1, 2033. BEFORE15
THE REPEAL, THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW IN16
ACCORDANCE WITH SECTION 24-34-104.17
SECTION 3. In Colorado Revised Statutes, recreate and18
reenact, with amendments, 44-30-1515 as follows:19
44-30-1515.  Repeal of part. T
HIS PART 15 IS REPEALED,20
EFFECTIVE SEPTEMBER 1, 2027. BEFORE THE REPEAL, THE REGULATION OF21
SPORTS BETTING BY THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW22
IN ACCORDANCE WITH SECTION 24-34-104.23
SECTION 4. In Colorado Revised Statutes, amend 44-30-507 as24
follows:25
44-30-507.  Delegation of licensing duties. The commission, 
AT26
ITS DISCRETION, may delegate LICENSING DUTIES DESCRIBED IN THIS PART27
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-3- 5 to the division. the authority to issue permanent and temporary support1
and key employee licenses, but the commission shall review and approve2
the issuance of all other licenses issued pursuant to this article 30.3
SECTION 5. In Colorado Revised Statutes, 44-30-103, amend4
(14) introductory portion as follows:5
44-30-103.  Definitions. As used in this article 30, unless the6
context otherwise requires:7
(14)  "Gaming employee" means any person employed by an8
operator or retailer hosting gaming to work directly with the gaming9
portion of the operator's or retailer's business, who shall be twenty-one10
EIGHTEEN years of age or older and hold a support license. Persons11
deemed to be gaming employees shall include: but shall not be limited to:12
SECTION 6. In Colorado Revised Statutes, amend 44-30-811 as13
follows:14
44-30-811.  Persons conducting limited gaming. (1)  No A15
person under the age of twenty-one years EIGHTEEN YEARS OF AGE shall16
NOT:17
(a)  Be employed as a gaming employee;18
(b)  Conduct, or assist in conducting, any limited gaming activity;19
and no such person shall OR20
(c)  Manage or handle any of the proceeds from limited gaming.21
SECTION 7. In Colorado Revised Statutes, 44-30-1610, amend22
(2) as follows:23
44-30-1610.  Grounds for discipline. (2)  If it appears to the24
director, based upon credible evidence as presented in a written25
complaint, that a person is operating or offering to operate a fantasy26
contest without having obtained a registration or license, the director may27
HB22-1412
-4- issue an order to cease and desist the activity. The director shall set forth1
in the order the statutes and rules alleged to have been violated, the facts2
alleged to have constituted the violation, and the requirement that all3
unauthorized practices immediately cease. Within ten days after service4
of the order to cease and desist pursuant to this subsection (2), the person5
may request a hearing on the question of whether acts or practices in6
violation of this part 16 have occurred. The hearing shall be conducted7
pursuant to section 24-4-105 
BY THE HEARINGS DIVISION OF THE8
DEPARTMENT IN ACCORDANCE WITH SECTION 44-30-1613.9
SECTION 8. In Colorado Revised Statutes, add 44-30-1613 as10
follows:11
44-30-1613.  Hearings. F
OR THE PURPOSES OF THIS PART 16,12
ADMINISTRATIVE HEARINGS SHALL BE CONDUCTED BY THE HEARINGS13
DIVISION OF THE DEPARTMENT.14
SECTION 9. In Colorado Revised Statutes, 44-30-1504, amend15
(7)(a) as follows:16
44-30-1504.  Disclosure of information by corporate applicants17
- license required - investigation - criminal history record check -18
rules - definition. (7) (a)  Each applicant for a sports betting license, with19
or as a supplement to the application, shall submit a set of fingerprints to20
the division; 
EXCEPT THAT AN APPLICANT WHOSE PRIMARY RESIDENCE IS21
LOCATED OUTSIDE OF THE UNITED STATES IS NOT REQUIRED TO SATISFY22
THIS REQUIREMENT UNLESS THE COMMISSION DETERMINES THAT THE23
APPLICANT IS SO REQUIRED. The division shall forward the fingerprints to24
the Colorado bureau of investigation for the purpose of conducting a state25
and national fingerprint-based criminal history record check utilizing26
records of the Colorado bureau of investigation and the federal bureau of27
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-5- investigation. Only the actual costs of the record check shall be borne by1
the applicant. Nothing in this subsection (7) precludes the division from2
making further inquiries into the background of the applicant.3
SECTION 10. In Colorado Revised Statutes, 26-13-118.7,4
amend (2) as follows:5
26-13-118.7.  Gambling winnings - interception - rules.6
(2)  Upon receipt from the registry operator of a payment and7
accompanying information pursuant to section 44-33-105 (2)(b), the state8
department shall notify the obligated parent in writing that the state9
intends to offset the parent's child support debt, child support arrearages,10
or child support costs against the parent's winnings from limited gaming,11
FROM SPORTS BETTING, or from pari-mutuel wagering on horse or12
greyhound racing. The notice shall
 MUST include information on13
CONCERNING the parent's right to object to the offset and to request an14
administrative review pursuant to the rules of the state board.15
SECTION 11. In Colorado Revised Statutes, 44-30-1503, amend16
(2)(a)(IV) as follows:17
44-30-1503.  Licenses - rules. (2) (a)  A license shall be revoked18
upon a finding that the licensee has:19
(IV)  E
XCEPT AS REQUIRED BY SECTION 44-30-1516, intentionally20
refused to pay a prize
 CASH WINNINGS in the licensee's possession to a21
person entitled to receive the prize CASH WINNINGS under this part 15.22
SECTION 12. In Colorado Revised Statutes, add 44-30-1516 as23
follows:24
44-30-1516.  Duties of licensees under the gambling payment25
intercept act. B
EFORE MAKING A PAYMENT OF CASH WINNINGS , A26
LICENSEE SHALL COMPLY WITH THE REQUIREMENTS OF ARTICLE 33 OF THIS27
HB22-1412
-6- TITLE 44.1
SECTION 13. In Colorado Revised Statutes, 44-33-102, amend2
(1)(c) and (1)(f) as follows:3
44-33-102.  Legislative declaration. (1)  The general assembly4
hereby finds and declares that:5
(c)   Children are adversely affected when parents divert their6
financial support to limited gaming, 
SPORTS BETTING, and pari-mutuel7
wagering;8
(f)  Victims of crime and all the people of the state are adversely9
affected when criminal offenders divert restitution to limited gaming,10
SPORTS BETTING, and pari-mutuel wagering;11
SECTION 14. In Colorado Revised Statutes, 44-33-103, amend12
(1) and (3) as follows:13
44-33-103.  Definitions. As used in this article 33, unless the14
context otherwise requires:15
(1)  "Licensee" means a licensee as defined in section 44-32-10216
(14), or
 an operator or retail gaming licensee under section 44-30-50117
(1)(b) or (1)(c), 
AN INTERNET SPORTS BETTING OPERATOR AS DEFINED IN18
SECTION 44-30-1501 (5), OR A SPORTS BETTING OPERATOR AS DEFINED IN19
SECTION 44-30-1501 (11).20
(3)  "Payment" means cash winnings from limited gaming, 
FROM21
SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound22
racing payable by a licensee for which the licensee is required to file form23
W-2G, or a substantially equivalent form, with the United States internal24
revenue service.25
SECTION 15. Act subject to petition - effective date. This act26
takes effect September 1, 2022; except that, if a referendum petition is27
HB22-1412
-7- filed pursuant to section 1 (3) of article V of the state constitution against1
this act or an item, section, or part of this act within the ninety-day period2
after final adjournment of the general assembly, then the act, item,3
section, or part will not take effect unless approved by the people at the4
general election to be held in November 2022 and, in such case, will take5
effect on the date of the official declaration of the vote thereon by the6
governor.7
HB22-1412
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